Some features of market structure are:
- It identifies how many sellers operate in an industry to show whether competition is strong or weak.
- It shows how strongly firms can influence prices to explain how easily price levels rise or fall.
- It highlights how clearly products differ across sellers to explain how easily buyers judge which option fits their needs.
- It indicates how simple or difficult it is for new firms to start operating to explain how strongly competition grows over time.
- It reveals how openly buyers and sellers share information to explain how confidently decisions are made.
Also check it out characteristics of market structure to learn more about it.